Global oil prices jump back up — Reuters
Photo: On December 1, oil prices began to rise again (Getty Images)
Oil prices rose on December 1 after OPEC+ members confirmed their intention to maintain stable production levels. However, there are concerns about supplies, according to Reuters.
How much oil rose?
According to the agency, Brent futures rose by $1.01, or 1.62%, to $63.39 per barrel as of 04:01 GMT.
US West Texas Intermediate crude added $1, or 1.71%, to $59.55.
Both positions ended Friday's trading down for the fourth consecutive month, the longest losing streak since 2023, amid expectations of increased global supply, which weighed on the market.
Why market growthing
Reuters explained that OPEC and its partners agreed in November to suspend production expansion, fearing oversupply.
After Sunday's meeting, OPEC+ said it reaffirmed the need for a cautious approach and maintaining full flexibility to continue, suspend, or cancel additional voluntary production adjustments. Market participants had anticipated this move in advance.
"For some time, the narrative has centred on an oil glut, so OPEC+’s decision to maintain its production target provided some relief and helped stabilise expectations for supply growth in the coming months," says LSEG senior analyst Anh Pham.
Meanwhile, experts noted that risks to supplies are increasing amid new Ukrainian strikes on Russian energy infrastructure and heightened tensions between the US and Venezuela.
The Caspian Pipeline Consortium, whose shareholders include Russian, Kazakh, and American companies, announced on Saturday that it was suspending operations after a Ukrainian drone damaged a pier at a Russian terminal in the Black Sea. The consortium transports more than 1% of the world's oil.
Market fluctuations
On November 26, global oil prices began to rise after falling to a monthly low. However, excess supply and a potential peace agreement between Russia and Ukraine limited the growth.
On November 27, it was reported that oil prices had fallen again amid expectations of a ceasefire between Ukraine and Russia, which could pave the way for the lifting of Western sanctions on Russian supplies.
